曼昆经济学原理第宏观全分析.ppt

* This example shows that the real exchange rate is the price of domestic goods relative to the price of foreign goods. * Students sometimes interpret the real exchange rate literally – a Japanese citizen can exchange ? of a Japanese burger for an American one – which they (rightly) consider ridiculous. This slide gives the correct interpretation. If you wish, you can give students this information verbally rather than showing the slide. * At this point in the textbook, there appears a graph (Figure 3) which shows Germany’s exchange rate during its interwar hyperinflation. The graph makes the point very clearly that, in this particular case, high inflation is accompanied by a similarly high depreciation. For the sake of variety, and to show students that this relationship holds more generally, I show on the next slide a scatterplot of data on exchange rate depreciation and inflation rates for a cross-section of countries. The message is the same: the higher a country’s inflation rate, the greater will be the rate at which the country’s exchange rate depreciates. * Due to the vast variation across countries, the relationship is easier to see using a log scale on both axes. As it turns out, the U.S. dollar appreciated against most currencies during 1993-2003, so I didn’t have to worry about logs of negative numbers. Source: World Development Indicators (WDI online database), World Bank The website is: /dataonline/ However, you either need to pay for a subscription to use this database, or to purchase the database on CD-ROM from the World Bank. The included countries are: Argentina, Australia, Bolivia, Brazil, Canada, Chile, China, Colombia, Egypt, Ethiopia, India, Indonesia, Israel, Japan, Kenya, S. Korea, Mexico, Mongolia, Morocco, Peru, Philippines, Poland, Portugal, Romania, Singapore, South Africa, Sudan, Thailand, Turkey, Ukraine, and Zimbabwe. My selection of countries for this chart was not purely random – I just looked down the list of